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Compliance July 1, 2008
Bill to Protect Senior Investors Introduced
July 1, 2008 (PLANSPONSOR.com) - U.S. Senators Bob
Casey (D-Pennsylvania) and Herb Kohl (D-Wisconsin), Chairman
of the Senate Special Committee on Aging, on June 27
introduced a bill to help protect seniors from investment
fraud.
Reported by Rebecca Moore
According to a joint statement on Casey’s Web site, the Senior Investor Protections Enhancement Act would increase penalties for those who commit securities violations against people who are at least 62 years old. Under the Act, penalties for existing securities violations could include an additional $50,000 civil fine for each violation that is primarily directed toward, specifically targets, or is committed against a senior.
The bill would increase penalties for those who commit securities violations against seniors, including selling them products that are unsuitable for their age, failing to disclose fees, lock-ups of cash or large penalty charges, switching investments sold with the one marketed, or other material aspects of the investment. The statement said Americans over the age of 65 control an estimated $15 trillion in assets, a large portion of which are investable.
“Many seniors are discovering that their life savings may not be enough to last them throughout their retirement. As they turn to investments to bridge the gap, seniors need to know that they can trust the people who handle their money,” said Kohl, in the statement. “This bill will ramp up the punishment for those who advantage of older Americans’ well-earned retirement savings.”